SIMPLE in a Partnership

[Lion]

I have only one of these and struggle with it every year. Probably doesn't help that this is only my second year on current software. I searched on SIMPLE and other words to try to find past discussions with no luck.

LLC taxed as a partnership, husband and wife 50/50 partners. Husband is not active and took some distributions. Wife is very active, took guaranteed payments, family health insurance premiums, and SIMPLE max plus matching.

I think I add health insurance to guaranteed payments in most places in the return EXCEPT for Schedule M-1 where line 3 is GP (other than health insurance). Right?

And, on her K-1, I should have line 13 L health insurance and 13 Q SIMPLE. Right?

If you happen to know how all this works in ProSystem fx, I will love you forever. Last year everything came out right with only one override and balanced. This year, I discovered why I needed the 2007 override and did that item "correctly" on 2008 but am having trouble with the M-1 flowing as mentioned above. And, I'm out of balance by about the amount of the health insurance!

It's late and our water stopped several hours ago and I need a shower before I can face this client. Thanks for any direction re this partnership return.

Wouldn't it be nice if all my clients used the same type of retirement plan so I could master its reporting?!

[Lion]

2007 vs. 2008

Yes, yes, I know that I gave box & line numbers from her 2007 forms where I was looking to see how I entered her GP, HI, and SIMPLE last year. I realize that some things are in different places on 2008 forms. But, I'm still unsure on the SIMPLE. And, even more frustrating, I'm out of balance by exactly the amount of HI. I thought I understood how that flows, having a couple of partnerships that pay for HI for a partner. The HI and SIMPLE are close to the same amount, so I still think the problem is the combination or the SIMPLE alone. Please help!

[BOB W]

Partnership Simple Plans are treated the sames as Sole Proprietors, on page one 1040 under self employed plans. Partners do not deduct the Simple on the 1065. Employees are treated at the 1065 level and their W-2s.
By the way> I don't think the non-active partner is eligible for the Simple.

[Lion]

Active partner

Thanks, Bob. The active partner does have the HI and the SIMPLE and the GP. That's what I was thinking. So the SIMPLE that was a check written by the partnership to partner's SIMPLE does NOT get deducted on the 1065 or DOES get deducted along with GP and then reported on the K-1 for the partner to enter it on her 1040? And, does it then show up also on the M-1 as GP, or as Deductions included on Schedule K not charged against book income this year, of if the latter situation in the last sentence then as Expenses recorded on books this year not included on Schedule K? I'm starting to grasp the theory but not the flow. This is my only one; had it for a couple of years before, but had a software change during that time. I know I'm struggling with the practical application.

And, I thought I was OK with the HI, having a couple of partnerships for sometime; but I'm out of balance by the exact amount of the HI. So, I'm trying to find where I've entered it one too many times, or one too few. I know it's added to GP for most entries, but the M-s asks for GP (other than health insurance)

I really need to get some sleep. And, some water! Thank you for your help.

[Lion]

Water

Bumping this up again in case someone has any more practical advice for me. Thank you, everyone.

And, I finally have water again tonight. I can't drink it or do laundry for a couple more days, but I can shower!

[Lion]

Bump

It felt great to shower! And, I'm bumping this up one last time in case anyone else reports SIMPLE contributions and health insurance premiums for an active member of an LLC/partnership...